The Cash book of Kofi Sam Enterprise at 30 June 2018 showed a debit balance of GH¢25,200 but his bank statement at the same date was a credit balance of GH¢41,665. A subsequent investigation showed that the following items caused the discrepancy between the cash book balance and the bank statement balance: 1. The bank had received dividends of GH¢1,250 on behalf of Kofi Sam Enterprise. 2. Unpresented cheques amounted to GH¢17,340. 3. Deposits not yet credited by the bank amounted to GH¢1,370. 4. Bank charges amounting to GH¢485 had not been recorded in the cash book. 5. A standing order of GH¢90 for insurance premium payment had been effected by the bank. 6. A cheque of GH¢4,870 issued to Adwoa was recorded as GH¢3,970. 7. A cheque of GH¢280 has been returned by the bank marked “refer to drawer.” 8. A customer of Kofi Sam Enterprise had made a direct payment of GH¢1,000 into its bank account. Required: a) Prepare an updated cash book b) Reconcile the updated cash book balance with the bank statement balance.
The
1. The bank had received dividends of GH¢1,250 on behalf of Kofi Sam Enterprise.
2. Unpresented cheques amounted to GH¢17,340.
3. Deposits not yet credited by the bank amounted to GH¢1,370.
4. Bank charges amounting to GH¢485 had not been recorded in the cash book.
5. A standing order of GH¢90 for insurance premium payment had been effected by the bank.
6. A cheque of GH¢4,870 issued to Adwoa was recorded as GH¢3,970.
7. A cheque of GH¢280 has been returned by the bank marked “refer to drawer.”
8. A customer of Kofi Sam Enterprise had made a direct payment of GH¢1,000 into its bank account.
Required:
a) Prepare an updated cash book
b) Reconcile the updated cash book balance with the bank statement balance.
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